Should You Purchase Add-Ons with Term Insurance Plan?
Updated On Sep 05, 2021
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A term insurance policy is a type of life insurance cover that offers a financial safety net to the family members of the policyholder in their absence. It could be an unfortunate demise of the policyholder during the plan period. A policyholder also gets to avail benefits from insurance riders under a term insurance plan by paying a little additional premium amount. Let us know various term insurance riders that would extend the safety under a term insurance plan.
Need of Term Insurance Riders
Life is full of uncertainties and eventualities do not come into one’s life with a warning. One can stay prepared in advance by having the correct term insurance riders along with a standard insurance plan. Let us know about these term insurance riders briefly:
1. Waiver of Premium Rider
Due to a disability, one may have to face limitations in their finances because of which a policyholder may be unable to pay the premiums for the whole duration. Under these situations, a policy generally gets expired and the policyholder does not receive any benefits from the same. However, by including this rider, the premium payable gets waived off in the event of disability when the plan is still active.
2. Critical Illness Rider
In today’s time, due to a stressed lifestyle, the majority of the population suffers from critical illnesses such as heart related issues, cancer, kidney problems, etc. The expenses on treatment can drill holes in your pockets in case you do not have any financial backup to meet these sudden health related expenses. However, to stay stress-free, you can include a critical illness rider to your standard term insurance plan. This rider can compensate with the lump sum amount in case the policyholder gets diagnosed with any health related ailments that has been pre-mentioned in the plan.
3. Accidental Death Rider
As life is full of uncertainties, in case you are the only breadwinner of the family then it is important to safeguard the future of your loved ones financially. In case you purchase a term insurance plan, it would only offer your loved ones with death benefit upon your demise. But, if you include an accidental death rider it would provide your family members with an added sum assured in case the policyholder dies due to an accident.
4. Permanent and Partial Disability Rider
An eventuality can happen anytime in an individual's life, which can result in either a permanent or partial disability at times, leaving the family of the policyholder in financial distress. However, by adding this rider, one can protect the future of their family financially against any of the unforeseen events.
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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.